Buffalo Wild Wings 2009 Annual Report Download - page 46

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Compensation expense for restricted stock units is recognized for the expected number of shares vesting at the end of each
annual period. Restricted stock units granted in 2008 are subject to cumulative one-year, two-year, and three-year net earnings targets.
The number of units that vest each year is based on performance against those targets. The expense recognized in the first year
includes the full expense for units vesting at the end of the first year, half of the expense for units vesting at the end of the second year,
and a third of the expense for units vesting at the end of the third year. Restricted stock units granted in 2009 are subject to three-year
cliff vesting and a cumulative three-year earnings target. For both of these restricted stock unit grants, significant assumptions are
made to estimate the expected net earnings levels for future years.
Results of Operations
Our operating results for 2009, 2008, and 2007 are expressed below as a percentage of total revenue, except for the
components of restaurant operating costs, which are expressed as a percentage of restaurant sales.
Fiscal Years Ended
Dec. 27,
2009
Dec. 28,
2008
Dec. 30,
2007
Revenue:
Restaurant sales 90.7% 89.9% 88.8%
Franchising royalties and fees 9.3 10.1 11.2
Total revenue 100.0 100.0 100.0
Costs and expenses:
Restaurant operating costs:
Cost of sales 30.2 29.8 30.8
Labor 30.0 30.2 30.0
Operating 15.6 15.9 16.4
Occupancy 6.6 6.6 6.8
Depreciation and amortization 6.1 5.6 5.2
General and administrative 9.2 9.5 10.8
Preopening 1.4 1.9 1.4
Loss on asset disposals and impairment 0.4 0.5 0.3
Total costs and expenses 91.8 91.6 92.2
Income from operations 8.2 8.4 7.8
Investment income 0.2 0.2 0.9
Earnings before income taxes 8.4 8.6 8.7
Income tax expense 2.7 2.8 2.7
Net earnings 5.7% 5.8% 6.0%
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Source: BUFFALO WILD WINGS INC, 10-K, February 26, 2010 Powered by Morningstar® Document Research℠